Socket Mobile (NASDAQ: SCKT) posts lower 2025 revenue and a much larger loss

Rhea-AI Filing Summary

Socket Mobile, Inc. reported weaker results for the fourth quarter and full year 2025 while maintaining roughly 50% gross margins. Full-year revenue was $15,078 (amounts in thousands) compared with $18,763 in 2024, and the company posted a net loss of $14,378 versus a $2,242 loss a year earlier, largely driven by a deferred income tax expense of $10,663.

For the fourth quarter, revenue was $3,963 compared with $4,831 in the prior-year quarter, with a net loss of $11,394 versus net income of $38. Operating expenses declined year over year, but higher interest expense and the tax charge contributed to the larger loss. Total assets fell to $14,437 from $27,346, while total equity dropped to $4,278 from $18,161 as accumulated deficit increased.

Management highlighted 2025 product and technology initiatives, including CaptureSDK 2.0, new SocketScan and DuraScan hardware, and expanded international approvals in Japan for government and digital ID use cases, and reiterated its focus on long-term data capture solutions despite ongoing macroeconomic and distributor headwinds.

Positive

• None.

Negative

• Sharp earnings deterioration and tax charge: Full-year net loss widened to $14,378 (amounts in thousands) from a $2,242 loss, driven by a $10,663 deferred income tax expense, indicating a materially weaker bottom line.
• Revenue decline and equity erosion: Revenue fell to $15,078 from $18,763, while total equity dropped to $4,278 from $18,161 as accumulated deficit increased, signaling pressure on the company’s financial position.

Insights

Technology small-cap equity analyst

Revenue contracted and a large tax charge drove a sharp 2025 loss.

Socket Mobile saw full-year revenue decline to $15,078 (amounts in thousands) from $18,763, while Q4 revenue slipped to $3,963 from $4,831. Gross margin held near 50%, but operating income remained negative as sales, marketing, R&D, and G&A still exceeded gross profit.

The most striking shift is the $10,663 deferred income tax expense, flipping a prior benefit into a large charge and pushing net loss to $14,378 for 2025 versus a $2,242 loss in 2024. On the balance sheet, total assets dropped to $14,437 from $27,346, and equity fell to $4,278 as accumulated deficit deepened.

Debt pressures also increased, with subordinated convertible notes (including related-party) rising to $5,483 in total. Management emphasized new products, CaptureSDK 2.0, and Japanese approvals for S370 and S550 as strategic advances. Subsequent filings may provide more detail on how these initiatives translate into revenue trends after December 31, 2025.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

February 19, 2026

Date of Report

(Date of earliest event reported)

SOCKET MOBILE, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-13810		94-3155066
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

40675 Encyclopedia Circle

Fremont, CA 94538

(Address of principal executive offices, including zip code)

(510) 933-3000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.001 Par Value per Share	SCKT	NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On February 19, 2026, Socket Mobile, Inc. issued a press release reporting its results for the three and twelve months ended December 31, 2025. The full text of the press release is furnished as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.		Description
99.1		Text of press release, dated February 19, 2026, titled "Socket Mobile Reports Fourth Quarter 2025 and Full Year Results".

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		SOCKET MOBILE, INC.
	By:	/s/ Lynn Zhao
		Name: Lynn Zhao Vice President, Finance and Administration and Chief Financial Officer

Date: February 19, 2026

Exhibit 99.1

 

Socket Mobile Reports Fourth Quarter 2025 and Full Year Results

FREMONT, Calif., – February 19, 2026 – Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced workplace productivity, today reported financial results that are determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the three and twelve months ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights:

• Revenue of $4.0 million, an 18% decrease from $4.8 million in the comparable prior-year quarter, a 28% sequential increase from $3.1 million in Q3 2025.

• Gross margin of 50.2% compared with 51.0% in the prior-year quarter and 47.7% in the preceding quarter.

• Operating loss of $0.6 million compared with $0.4 million in the prior-year quarter and $1.1 million in the preceding quarter.

• In accordance with ASC 740, the Company recognized a one-time adjustment to record a full valuation allowance of $10.7 million against its deferred tax assets as of December 31, 2025.

• Net loss per share of ($1.43) compared with diluted earnings per share of $0.00 in the prior-year quarter and net loss per share of ($0.15) in the preceding quarter.

Full Year 2025 Financial Highlights:

• Revenue of $15.1 million, compared with $18.8 million in 2024, a 19.6% year-over-year decrease.

• Gross margin of 49.7% compared with 50.4% in 2024.

• Operating loss of $3.2 million compared with an operating loss of $2.5 million in 2024.

• Recording a 10.7 million valuation allowance on deferred tax assets resulted in a one-time 2025 income tax expense of $10.7 million, compared to an income tax benefit of $0.6 million in 2024.

• Net loss per share of ($1.81) compared with ($0.30) in the prior year.

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“In 2025, despite a very challenging macroeconomic and distributor environment, we made significant progress strengthening our product portfolio, expanding our technology capabilities, and enhancing the value we deliver to our customers,” said Kevin Mills, President, and Chief Executive Officer.

“We advanced our position in the mobile data capture market through a series of important innovations. We launched CaptureSDK 2.0, a unified, next-generation development toolkit that makes it easier for developers to build seamless integrations across iOS and Android. We introduced the SocketScan S721 with Bluetooth Low Energy for faster pairing, improved connectivity, and lower power usage. We also expanded our hardware lineup with the XtremeScan v16e, the DuraScan D751 NFC/RFID reader, and the compact DuraScan D764 designed for Direct Part Mark applications. Each of these products reflects our commitment to delivering reliable, high-performance tools that help customers operate more efficiently.”

“We also strengthened our international presence, including receiving official approval in Japan for the S370 and S550 as certified ‘My Number Card’ readers—enabling broader use in government services, digital identity authentication, and Apple Wallet integrations. These achievements contributed to growing engagement across retail, industrial, hospitality, and enterprise markets,” continued Mr. Mills.

“While sales volumes were impacted by external headwinds, our gross margins remained resilient, supported by disciplined cost management and operational efficiency. At the same time, we continued to invest in the product development and global reach that will drive long-term value for our customers. We also took deliberate steps to reinforce our financial position and preserve the resources needed to support innovation and service.”

“Looking ahead, we remain focused on delivering dependable, high-quality data capture solutions that help our customers improve productivity, streamline operations, and stay competitive in dynamic markets. We are proud of the meaningful progress we achieved in 2025, and we sincerely appreciate the trust and support of our customers and partners as we continue to build for the future,” concluded Mills.

Conference Call

The management of Socket Mobile will hold a conference call today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly and year-end results and outlook for the future. The dial-in number to access the live conference call is (800) 237-1091, toll-free from within the U.S., or (848) 488-9280 (toll).

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About Socket Mobile, Inc.

Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. Socket Mobile’s revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications that integrate Socket Mobile’s cordless barcode scanners and contactless readers/writers. Mobile Applications servicing the specialty retailer, field service, digital ID, transportation, and manufacturing markets are the primary revenue drivers. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Fremont, Calif., and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on LinkedIn, X, and keep up with our latest News and Updates.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements regarding new mobile computers and data collection products, including details on the timing, distribution, and market acceptance of the products, and statements predicting trends, sales, market conditions, and opportunities in the markets in which we sell our products. Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements as a result of a number of factors, including, but not limited to, the risk that our new products may be delayed or not rollout as predicted, if ever, due to technological, market, or financial factors, including the availability of necessary working capital, the risk that market acceptance and sales opportunities may not happen as anticipated, the risk that our application partners and current distribution channels may choose not to distribute the new products or may not be successful in doing so, the risk that acceptance of our new products in vertical application markets may not happen as anticipated, and other risks described in our most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.

Socket Mobile Investor Contact:

Lynn Zhao

Chief Financial Officer

510-933-3016

lynn@socketmobile.com

Socket is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.

© 2026, Socket Mobile, Inc. All rights reserved.

– Financial tables to follow –

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Socket Mobile, Inc.

Condensed Summary Statements of Operations

(Amounts in thousands except per share amounts)

	Year ended Dec 31,								Three months ended Dec 31,
		(Unaudited) 2025				2024*				(Unaudited) 2025				2024*
Revenue	$	15,078			$	18,763			$	3,963			$	4,831
Cost of revenue		7,590				9,311				1,972				2,366
Gross profit		7,488				9,452				1,991				2,465
Gross profit percent		49.7	%			50.4	%			50.2	%			51.0	%
Research & development		4,351				4,721				1,091				1,119
Sales & marketing		3,990				4,414				924				1,106
General & administrative		2,366				2,779				566				651
Total operating expenses		10,707				11,914				2,581				2,876
Operating income (loss)		(3,219	)			(2,462	)			(590	)			(411	)
Interest expense		(496	)			(331	)			(141	)			(102	)
Loss before income taxes		(3,715	)			(2,793	)			(731	)			(513	)
Deferred income tax benefit (expense)		(10,663	)			551				(10,663	)			551
Net income (loss)	$	(14,378	)		$	(2,242	)		$	(11,394	)		$	38
Net income (loss) per share:
Basic	$	(1.81	)		$	(0.30	)		$	(1.43	)		$	0.00
Fully diluted	$	(1.81	)		$	(0.30	)		$	(1.43	)		$	0.00
Weighted average shares outstanding:
Basic		7,925				7,558				7,971				7,605
Fully diluted		7,925				7,558				7,971				7,703

*Derived from audited financial statements.

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Socket Mobile, Inc.

Condensed Summary Balance Sheets

(Amounts in Thousands)

	(Unaudited) December 31, 2025				December 31, 2024*
Cash	$	2,032			$	2,492
Accounts receivable		1,711				1,588
Inventories		4,221				4,942
Deferred costs on shipments to distributors		122				143
Other current assets		548				431
Property and equipment, net		2,125				2,787
Deferred tax assets		—				10,663
Intangible assets, net		1,305				1,432
Operating leases right-of-use assets		2,087				2,604
Other long-term assets		286				264
Total assets	$	14,437			$	27,346
Accounts payable and accrued liabilities	$	2,023			$	1,977
Subordinated convertible notes payable, net of discount		400				150
Subordinated convertible notes payable, net of discount-related party		5,083				3,818
Deferred revenue on shipments to distributors		336				392
Deferred service revenue		28				31
Operating lease liabilities		2,289				2,817
Total liabilities		10,159				9,185
Common stock		69,870				69,374
Accumulated deficit		(64,554	)			(50,175	)
Treasury stock		(1,038	)			(1,038	)
Total equity		4,278				18,161
Total liabilities and equity	$	14,437			$	27,346

*Derived from audited financial statements.

# # #

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FAQ

How did Socket Mobile (SCKT) perform financially in full-year 2025?

Socket Mobile reported weaker 2025 financial results. Revenue was $15,078 (amounts in thousands), down from $18,763 in 2024, and net loss widened to $14,378 from a $2,242 loss, mainly due to a $10,663 deferred income tax expense.

What were Socket Mobile (SCKT) fourth quarter 2025 results?

Fourth quarter 2025 performance declined year over year. Revenue totaled $3,963 (amounts in thousands) versus $4,831 in the prior-year quarter, with a net loss of $11,394 compared with net income of $38, as operating loss and tax expense pressured results.

How did Socket Mobile’s (SCKT) balance sheet change in 2025?

Socket Mobile’s balance sheet weakened in 2025. Total assets declined to $14,437 (amounts in thousands) from $27,346, while total equity fell to $4,278 from $18,161, reflecting a larger accumulated deficit and significant deferred tax asset removal.

What happened to Socket Mobile’s (SCKT) deferred tax assets in 2025?

Deferred tax assets were eliminated in 2025. Deferred tax assets went from $10,663 (amounts in thousands) at December 31, 2024, to zero at December 31, 2025, alongside a $10,663 deferred income tax expense that materially increased the company’s net loss.

Did Socket Mobile (SCKT) maintain its gross margin in 2025?

Gross margins remained around 50% in 2025. Full-year gross profit was $7,488 on $15,078 of revenue, for a 49.7% gross profit percent, compared with 50.4% in 2024, indicating stable product profitability despite lower sales volumes.

What strategic initiatives did Socket Mobile (SCKT) highlight for 2025?

Socket Mobile emphasized product and technology expansion. Management cited CaptureSDK 2.0, new SocketScan and DuraScan devices, and Japanese approval of S370 and S550 for “My Number Card” use, supporting broader data capture and digital identity applications across multiple markets.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99 EXHIBIT 99.1 62.5 KB

Other Documents

• EX-101 sckt-20260219.xsd 3.0 KB
• EX-101 sckt-20260219_lab.xml 33.4 KB
• EX-101 sckt-20260219_pre.xml 21.8 KB